Margins had been flat to barely weaker over the primary half of December as hog costs declined from contemporary contract highs in late November whereas projected feed prices had been regular to a bit firmer. The money hog market has seasonally declined from new 10-year highs since late
November whereas the pork cutout has elevated about $4.50/cwt. or 5% as a pointy rise in ham costs has supplied assist. Pork export gross sales final week had been the best recorded for the 12 months with 62,000 MT of recent commitments in comparison with the latest four-week
common of 26,600 MT. Mexico was an enormous purchaser with 15,335 MT of the full 35,163 MT for the present advertising 12 months, representing greater than double the amount based mostly on the tempo for the earlier 4 weeks. One other 8,720 MT of export gross sales commitments within the subsequent
advertising 12 months had been additionally recorded for Mexico, with over 60,000 MT on the books for supply this 12 months and subsequent in comparison with 45,000 MT presently final 12 months. China was additionally lively this previous week with virtually 14,000 MT of recent gross sales commitments. Furthermore, whole pork shipments for the week had been additionally sturdy at 32,154 MT, 2% greater than the earlier four-week common and in step with final 12 months’s tempo. One regarding function of the market at the moment is that the non-commercial, internet lengthy place (managed cash + different) is at a brand new 15-year excessive for this time of 12 months and never removed from an all-time document excessive as merchants specific rising confidence within the continuation of brief provides and robust demand shifting into 2025. After including new positions lately to reap the benefits of traditionally sturdy margins, our shoppers are starting to plan for alternatives to make strategic changes to permit additional flexibility for potential margin enchancment over time.
The Hog Margin calculation assumes that 73 lbs of soybean meal and 5.3 bushels of corn are required to supply 100 lean hog lbs. Extra assumed prices embrace $44 per cwt for different feed and non-feed bills
Hog Margin Watch experiences are supplied by CIH. Click on right here to see CIH Hog Providers.
